Financial updates dictate late action

Pfizer, Xilinx, Newport issue financial updates

By

NicoleMaestri

NEW YORK (CBS.MW) -- Investors were treated to an array of earnings updates in the evening session Monday, with Pfizer reaffirming its 2001 and 2002 financial targets, Xilinx sticking to its second-quarter revenue expectations and Newport issuing a warning.

Pfizer shares got a slight pop after the company reiterated its earlier earnings targets for 2001 and 2002. In third market action, shares rose to $38.50 after closing on the New York Stock Exchange up $1.17 at $38.17.

Xilinx reiterated its second-quarter revenue target but said it will take a second-quarter write-down in the range of $65 million and $85 million. In recent action, Xilinx
XLNX, -1.06%
shares slid 18 cents to $36.19 after finishing Nasdaq trading off 88 cents at $36.37. Also moving in heavy demand were shares of competitor Altera
ALTR, -0.96%
up nearly 1 percent.

Fiber optics and semiconductor equipment manufacturer Newport said it will take a larger-than-expected third-quarter charge, lowered its third-quarter revenue and earnings targets, and said it's cutting more jobs. Shares backpedaled 10 percent to $13.34 on the Island ECN. Watch video report.

Ariba was an evening gainer, rising better than 13 percent to $2.34. The Home Depot
HD, -1.95%
said it has chosen Ariba
ARBA
software to manage its corporate spending.

In a short release, ExciteAtHome
ATHM, -0.14%
said its CFO Mark McEachen resigned and "will leave the company to pursue other opportunities." Excite said it's seeking a new CFO. Shares gave up 3 cents to 36 cents.

Elsewhere, Allied Waste Industries
AW
said it expects third-quarter earnings and revenue will be "essentially flat" compared with the second quarter, citing economic indicators that show the economy has worsened.

In the broader markets, the major stocks indexes finished the day nearly unchanged as hesitant investors await economic figures set for release Friday and an earnings report due from Oracle in Thursday's evening session. The database software giant is expected to earn 8 cents per share on revenue of $2.24 billion, according to the consensus estimate of analysts polled by First Call/Thomson Financial. Read Market Snapshot.

Pfizer

The New York-based drugmaker said it expects earnings from continuing operations of $1.27 per share to $1.30 per share for 2001 and earnings from continuing operations in 2002 of $1.56 per share "or better."

The maker of anti-impotence drug Viagra was expected to earn $1.30 per share in 2001 and $1.59 per share in 2002, according to the average estimates of analysts polled by Thomson Financial/First Call.

In third market action, shares rose to $38.50 after closing on the New York Stock Exchange up $1.17 at $38.17.

Xilinx

Xilinx
XLNX, -1.06%
reiterated that it expects second-quarter revenue to be down 20 to 25 percent compared with the first quarter total of $289.3 million. Analysts polled by First Call currently expect revenue of about $224 million.

Xilinx said it will take an inventory write-down in the range of $65 million and $85 million in the second quarter, mainly in relation to its Virtex and Virtex-E FPGA products. Xilinx said there was decreased demand for those products.

Excluding the write-down, the company expects gross margin to track slightly ahead of the 50 to 52 percent guidance for the September quarter. Read full story.

Ariba, Home Depot

The Home Depot
HD, -1.95%
said it has chosen Ariba
ARBA
software to manage its corporate spending.

"We're confident the Ariba solutions will allow us to quickly streamline procurement processes and reduce costs," said Home Depot vice president David Strauss, in a company statement.

Shares of Ariba finished Nasdaq trading up 10 percent at $2.07.

Newport

Fiber optics and semiconductor equipment manufacturer Newport said it will take a larger-than-expected third-quarter charge, lowered its third quarter revenue and earnings targets, and said it's cutting more jobs due to continued weakness in its markets.

Shares, which closed the regular session down 7 percent at $14.79, fell an additional 10 percent to $13.34 in evening action.

Newport
NEWP
said it's going to take a charge of $38.5 million during the third quarter, more than the $6 million to $10 million charge it had previously announced because of inventory issues. For the $38.5 million charge, $32.5 million will be non-cash.

The company will also cut more jobs, adding that it sees weak demand continuing through the first half of 2002. Including 180 to 200 layoffs announced in July, Newport will now expand that to total 350 to 375 employees. It's also going to consolidate some facilities in California, Colorado and Sweden.

Newport now sees third-quarter revenue in the range of $58 million to $62 million, which is $10 million to $14 million below its previous expectations. It sees a third-quarter earnings "slightly better than break-even." Analysts currently expect earnings of 17 cents per share, according to Thomson Financial/First Call.

For the fourth quarter, Newport said revenue will be approximately the same as the third quarter, with earnings per share slightly higher than the third quarter. Newport expects revenues for the full year 2001 to be between $325 million and $330 million.

Allied Waste Industries

Allied Waste Industries
AW
said it expects third-quarter earnings and revenue will be "essentially flat" compared with the second quarter, citing economic indicators that show the economy has worsened.

The company anticipates there will not be an increase in disposal volumes in the third quarter.

In the second quarter, earnings totaled 22 cents a share, with revenue of $1.41 billion. Analysts polled by First Call currently expect a third-quarter profit of 27 cents a share. As a result of the weak conditions, the company anticipates 2001 EBITDA to be 3 to 4 percent below the previously indicated guidance minimum of $2.075 billion.

Shares slipped 54 cents to $17.21 ahead of the news and then retreated to $16.20 in light trading action on the third market.

Finisar

Finisar
FNSR, +1.10%
said it will privately sell $200 million of convertible subordinated notes, due in 2008, with the proceeds to be used for general corporate purposes. The notes, which have a term of seven years, will be convertible into the company's common stock at a to-be-determined price. The offering is expected to close this month.

Finisar, which makes fiber optic subsystems, said it has the option to issue an additional $30 million in notes to cover over-allotments.

Shares, which finished Nasdaq trading off 5.2 percent at $8.25, slid an additional 9.2 percent to $7.49 in evening action.

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